Statement of Finance Secretary Cesar V. Purisima:

On the Monetary Board Policy Rate Increase

[Released on March 25, 2011]

We support the decision of the Monetary Board to increase policy rates by 25 basis points as a means to rein in inflation expectations. The Monetary Board’s move has taken into consideration the macroeconomic implications of the ongoing political events in the Middle East and North Africa, the growth implications of the disasters that have hit Japan, the rising costs of food and oil, and the country’s economic growth prospects.

The government maintains that uncertainties enveloping other parts of the world will not necessarily have a significant and long-term effect on Philippine growth prospects. We would like to assure the public that measures being undertaken by fiscal and monetary authorities—such as the pending review of macroeconomic assumptions by economic managers and today’s raising of interest rates by the Central Bank—are all precautionary.

Such is a proof of a functioning, responsive, and active bureaucracy.

Rest assured that the Aquino administration remains determined to push for the 7- to 8-percent growth goal this year and in the medium-term.